Correlation Between Bisichi Mining and Games Workshop

Can any of the company-specific risk be diversified away by investing in both Bisichi Mining and Games Workshop at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Bisichi Mining and Games Workshop into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bisichi Mining PLC and Games Workshop Group, you can compare the effects of market volatilities on Bisichi Mining and Games Workshop and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Bisichi Mining with a short position of Games Workshop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bisichi Mining and Games Workshop.

Diversification Opportunities for Bisichi Mining and Games Workshop

0.0

Correlation Coefficient

Bisichi Mining  Games Workshop

Pay attention - limited upside

The 3 months correlation between Bisichi and Games is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bisichi Mining PLC and Games Workshop Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Games Workshop Group and Bisichi Mining is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Bisichi Mining PLC are associated (or correlated) with Games Workshop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Games Workshop Group has no effect on the direction of Bisichi Mining i.e., Bisichi Mining and Games Workshop go up and down completely randomly.

Pair Corralation between Bisichi Mining and Games Workshop

Assuming the 90 days trading horizon Bisichi Mining is expected to generate 3.47 times less return on investment than Games Workshop. In addition to that, Bisichi Mining is 1.06 times more volatile than Games Workshop Group. It trades about 0.04 of its total potential returns per unit of risk. Games Workshop Group is currently generating about 0.14 per unit of volatility. If you would invest  1,050,512  in Games Workshop Group on September 22, 2024 and sell it today you would earn a total of  249,488  from holding Games Workshop Group or generate 23.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bisichi Mining PLC  vs.  Games Workshop Group

Bisichi Mining PLC

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bisichi Mining PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bisichi Mining may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Games Workshop Group

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Games Workshop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bisichi Mining and Games Workshop

The main advantage of trading using opposite Bisichi Mining and Games Workshop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bisichi Mining position performs unexpectedly, Games Workshop can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Games Workshop will offset losses from the drop in Games Workshop's long position.

The idea behind Bisichi Mining PLC and Games Workshop Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.